Niva Bupa Health Insurance IPO Receives 1.9x Subscription on Day 3, Check GMP Today

Mumbai: The Indian insurance market has seen another major public offering with Niva Bupa Health Insurance Company Ltd hitting its final day of bidding, with the Initial Public Offer (IPO) receiving an overwhelming response from investors.

As per reports, the IPO received 1.90 times subscription on the third day of bidding, garnering bids for 31,13,62,800 shares against the available 16,35,13,515 shares. This indicates a promising start to the offering, which has garnered significant interest from both domestic and international investors.

The portion for qualified institutional buyers (QIBs) has been subscribed by 2.17 times, while retail individual investors fetched a significantly higher 2.88 times subscription. Non-institutional investors also showed some enthusiasm, with a subscription of 0.71 times.

For its final round of bidding, the issue received strong support from both institutional and individual investors, reflecting growing interest in the insurance sector as a whole. The IPO has been seen by many analysts to be a major step towards expansion for Niva Bupa Health Insurance Company Ltd, which has an established market presence across India.

Niva Bupa Health Insurance is one of India's third-largest standalone health insurers (SAHI) and the second-fastest growing in the industry, with a net profit of Rs 81.85 crore recorded in FY 2023-24, and a Gross Direct Premium Income (GDPI) of Rs 5,494 crore in the same period.

With this latest IPO, Niva Bupa Health Insurance aims to raise Rs 2,200 crore in the current fiscal, with Rs 800 crore coming from its fresh fundraising. The company plans to use the raised amount for expansion and growth plan.

The final allotment of shares is expected on November 12, after which investors will start receiving their shares. As per reports, unlisted shares of Niva Bupa Health Insurance Ltd are trading in the grey market at zero or around Rs 3 per share, reflecting a discount compared to its listing price of Rs 70-74 per share.

Market observers have also noted that this is one such IPO that investors will surely watch closely, considering the trends in the insurance sector and rising investment demands.